Hinduja Leyland Finance (HLF), the commercial vehicles financing subsidiary of Ashok Leyland, is planning to raise Rs 600-650 crore through an initial public offering (IPO).
The firm has hired five banks to manage the IPO process. The firm is planning to list on the stock markets by the second half of the next financial year. Private equity firm Everstone Group, which is an investor in the company, will make a partial exit through the IPO.
The IPO will help the company to strengthen its capital base and to expand its lending business, which has recently seen the addition of a new category of housing loans, said the third person mentioned above.
Ashok Leyland, the Hinduja Group flagship company in India, is engaged in the manufacturing of commercial vehicles and related components. The company’s products include buses, trucks, engines, defense and special vehicles.
